Article Details

THE EFFECT OF OVERREACTION IN FORMING PORTFOLIO IN CASE OF INDONESIAN STOCK MARKET AS YEAR OF 1992-2009

Oleh   PUTU AGNI PARAHITA (NIM 19007065); Pembimbing: Deddy P. Koesrindartoto, Ph.D.
Kontributor / Dosen Pembimbing : Pembimbing: Deddy P. Koesrindartoto, Ph.D.
Jenis Koleksi : S1-Tugas Akhir
Penerbit : Sekolah Bisnis dan Manajemen
Fakultas : Sekolah Bisnis dan Manajemen (SBM)
Subjek :
Kata Kunci : overreaction, winner portfolio, loser portfolio
Sumber :
Staf Input/Edit : Vika Anastasya Kovariansi  
File : 7 file
Tanggal Input : 2012-07-23 11:22:55

This paper aim to reflect the tendency of Indonesian stock market that affected by the overreaction. The outperform performance of loser portfolio will reflect the reversal pattern that present the rebound of the loser portfolio, while the winner will fade back. This implies to a view of strategy to the investor, which is called contrarian strategy. The strategy of the contrarian strategy is found by using the overreaction prediction to invest in loser portfolio in certain period of time and avoiding the winner portfolio at that certain period of investment. But, as it is know that the security market follow the random walk of pattern, it still can not predicted what will happen in the future since there are many factors that affected the stock market. The results indicate that there is significant different among winner, middle and loser portfolio based on its average mean of return. It is also claimed that the investor mindset of the winner will always win is also failed.